What are the margin requirements for different types of orders?
Each order type has specific logic regarding the usage of margin to open and close positions. • Market Orders: Market orders create new positions and you will need the full margin requirement in your “Usable Margin”. • Orders linked to an Open Position: Once a position is open, an order can be linked to that position, such as a stop or limit order. This linked order does not require additional new margin. As this order is offsetting your position, it will reduce your “used margin” when executed. Linked orders must be for the full amount of the original position. • Stop or Limit Orders, Entry Orders: New orders to enter positions, such as a stop entry or limit entry, require new “usable margin” to open the position. If you do not have sufficient margin at the time the order is placed, the order will not be accepted. If your “usable margin” falls below the amount required to execute the order, on an existing stop entry or stop limit, the new order will be cancelled.
